US Financial Markets React to Fed's Potential Rate Cuts
9 months ago

The broad market exchange-traded fund SPDR S&P 500 ETF Trust ($SPY) experienced a 0.5% increase while the heavily traded Invesco QQQ Trust ($QQQ) climbed 0.9% during Friday's premarket trading, as investors anticipated a potential third interest rate cut by the US Federal Reserve before the end of the year. US stock futures were also on the rise, with S&P 500 Index futures up 0.4%, Dow Jones Industrial Average futures gaining 0.1%, and Nasdaq futures increasing by 0.8% ahead of regular trading. In an update released at 8:30 am ET, US import prices showed an unexpected rise in November, while export prices remained steady.

The weekly Baker Hughes oil-and-gas rig count was also anticipated at 1 pm ET. In premarket activity, bitcoin registered a 0.4% increase, while the cryptocurrency fund ProShares Bitcoin Strategy ETF ($BITO) rose by 0.6%. Power Play: Health Care The Health Care Select Sector SPDR Fund ($XLV) nudged up by 0.1%.

However, the Vanguard Health Care Index Fund ($VHT) saw a slight decline of 0.3%, and the iShares US Healthcare ETF ($IYH) remained inactive. Meanwhile, the iShares Biotechnology ETF ($IBB) stood flat. Shares of Repare Therapeutics ($RPTX) plummeted 37% in Friday's premarket trading after the company disclosed results from a phase 1 trial involving cancer drugs lunresertib and camonsertib, which achieved a 25.9% response rate in endometrial cancer and a 37.5% response rate in platinum-resistant ovarian cancer. Winners and Losers: Industrial The Industrial Select Sector SPDR Fund ($XLI) rose by 0.5%.

The Vanguard Industrials Index Fund ($VIS) performed slightly better with a 0.6% gain, while the iShares US Industrials ETF (IYJ) remained inactive. Loop Industries ($LOOP) stock surged by 30% prior to the trading bell following the company’s announcement of securing 10 million euros ($10.5 million) through a convertible preferred security financing agreement with Reed Societe Generale Group, a firm majority-owned by Societe Generale. Technology The Technology Select Sector SPDR Fund (XLK) saw an increase of 1.1%, with the iShares US Technology ETF ($IYW) up by 0.7%; however, the iShares Expanded Tech Sector ETF ($IGM.US) remained inactive.

In the semiconductor ETF space, while the SPDR S&P Semiconductor ETF ($XSD) did not move, the iShares Semiconductor ETF ($SOXX) gained 2.1%. Broadcom ($AVGO) shares soared 17% before Friday’s opening after the company reported higher fiscal Q4 non-GAAP net income and revenue. Consumer The Consumer Staples Select Sector SPDR Fund ($XLP) remained flat, while the Vanguard Consumer Staples Fund ($VDC) and the iShares US Consumer Staples ETF ($IYK) were inactive.

The Consumer Discretionary Select Sector SPDR Fund ($XLY) achieved a slight gain of 0.2%, whereas the VanEck Retail ETF ($RTH) was inactive, and the SPDR S&P Retail ETF ($XRT) also stood flat. RH ($RH) stock was up 13% ahead of the opening bell, following the company's positive fiscal Q3 adjusted earnings report and increased revenue. Financial The Financial Select Sector SPDR Fund (XLF) moved 0.4% higher.

Direxion Daily Financial Bull 3X Shares ($FAS.US) rose by 1%, contrary to its bearish counterpart, Direxion Daily Financial Bear 3X Shares ($FAZ), which decreased by 0.7%. Washington Trust Bancorp ($WASH) shares fell 2.2% before the opening bell, after the company announced it priced an upsized public offering of approximately 1.9 million shares at $34 each. Energy The iShares US Energy ETF ($IYE) was inactive, while the Energy Select Sector SPDR Fund ($XLE) recorded a 0.5% increase. CVR Energy ($CVI) shares dipped by 0.3% ahead of the trading bell after the company announced pricing for a proposed $325 million senior secured term loan B due 2027. Commodities Front-month US West Texas Intermediate crude oil increased 0.8%, reaching $70.55 per barrel on the New York Mercantile Exchange.

Natural gas decreased by 1.1% to $3.42 per 1 million British Thermal Units. The United States Oil Fund (USO) gained 0.5%, while the United States Natural Gas Fund (UNG) dropped by 1.9%. Gold futures for February fell 0.7% to $2,691 an ounce on the Comex, while silver futures declined by 1% to $31.32 an ounce.

SPDR Gold Shares ($GLD) saw a decrease of 0.2%, and the iShares Silver Trust ($SLV) fell by 0.5%..

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